May 14th, 2010
Beer Taxes . John Kerry and Beer . Massachusetts Beer Tax
Senator proposes to lower the taxes on beer for smaller breweries
WOW. Very interesting tax news for small breweries. I heard about this news yesterday on the Fox 25 morning show and I wanted to share this story… I wonder if the Mass Brewers Guild was influential in this decision – I imagine that they helped.
Enjoy
Sean
2Beerguys.com
Drink Craft Beer, You’ve Earned It
This article was posted on the Boston Herald on May 13th.
Small brewers toast Sen. John Kerry’s beer-tax plan
By Jay Fitzgerald – Thursday, May 13, 2010
Boston Beer Co. and Harpoon Brewery are raising pints to Sen. John Kerry’s call to lower federal taxes on suds makers.
Kerry, a member of the Senate’s Small Business Committee, is co-sponsoring new legislation that would cut the excise tax for brewers who make less than 2 million barrels of beer a year. The bill would benefit some 1,500 small beer makers nationwide, including 40 in Massachusetts.
The excise tax cuts are needed to help create jobs and to keep smaller breweries competitive with larger rivals, Kerry said.
“Massachusetts started the small craft-beer revolution, and we’re proud of it,” he said in a statement. “Small and independent brewers are vital small businesses in our state, and relieving their tax burden will help them keep hiring and expanding.”
Jim Koch, founder of Sam Adams brewer Boston Beer, and Dan Kenary, president of Boston’s Harpoon Brewery, are toasting the tax-cut idea.
“We’re obviously delighted,” said Kenary, whose company produces about 135,000 barrels of beer a year.
“It will help us grow and provide jobs in Massachusetts,” said Koch, whose company is the largest small brewer, producing about 2 million gallons of suds a year.
Massachusetts lawmakers recently slapped the state’s 6.25 sales tax on retail alcohol sales, on top of a previous wholesale tax. Liquor-store owners and beer makers say the state tax hike has harmed their businesses.
Kerry’s bill would lower the federal excise tax to $3.50 from $7 per barrel for the first 60,000 barrels made by a small brewer, while lowering the tax from $18 to $16 for the the next 60,000 to 2 million barrels.